TSO Marketing hosted a series of regional meetings that were held in December to present the changes in advertising contributions and to also determine if certain regions wanted to continue as a council.
The Board of Directors approved a proposal submitted by the Advertising and Marketing Committee replacing the 5% and 5.5% advertising contribution with a brand license contribution of 2%. This change will go into effect January 1, 2015. The first 2% brand license contribution will be due February 20, 2015 based on January 2015 sales.
In their proposal, the Advertising Committee made clear that these changes did not discourage network members to advertise locally but that a one size fits all approach was not practical and not in the best interest of members or the network. Members are encouraged to advertise in their communities and form councils to collectively spend contributions.
The Advertising Policies and Guidelines that were approved at the November 2013 board meeting were affirmed, and TSO Marketing is directed to ensure that members’ advertising activities comply with the policies. (A full set of these policies and guidelines are available in the Forms and Manuals section of the Member Login area of www.tsonetworkupdate.com.)
Advertising Committee Chairman, Dr. Roland Montemayor stated that this change is one of most significant made by the board since the doctors purchased the company in 2001. The Advertising Committee held numerous meetings to discuss the reasons and merits of the change and the policies needed to protect and build value in the TSO brand.